Lecture management a pacific rim focus chapter 2 pioneering ideas in management

CHAPTER 2
PIONEERING IDEAS IN
MANAGEMENT
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Lecture outline
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Early management ideas
Classical theorists
Behavioural theorists
Quantitative approach
Contemporary ideas
Innovation & management theory

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Early management ideas
• Robert Owen (1771–1858)
Identified the importance of working and social

conditions for employees.
• Charles Babbage (1792–1871)
Ideas on work specialisation, production efficiency,
incentive and profit-sharing plans.
• Henry R. Towne (1844–1924)
Called for a ‘management science’ that would
establish ‘principles’ of management.
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Early management ideas
Assessing the early contributions:
• Uncoordinated efforts.
• Contributions tended to relate to specific problems.
• Did not see ‘management’ as a separate field or skill
(until Towne).

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Classical theorists
‘This viewpoint emphasises managing work and
organisations more efficiently.
It comprises three different management
approaches: scientific, administrative and
bureaucratic.’

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Classical theorists
• Scientific management
F. W. Taylor, F. & L. Gilbreth, H. Gantt
• Bureaucratic management
M. Weber
• Administrative management
H. Fayol

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Scientific management
‘Scientific management is an approach within
classical management theory emphasising the
scientific study of work methods to improve worker
efficiency.’

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Scientific management
Frederick W. Taylor
Four principles of ‘scientific management’:
• Select & train the best.
• Determine the most efficient work methods.
• Co-operate with workers to ensure best method is
used.
• Divide work/responsibility between workers &
managers.

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Scientific management
• Frank & Lillian Gilbreth
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Time & motion studies
Human implications of Scientific Management

• Henry Gantt
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Pay incentives
Gantt chart

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Bureaucratic management
‘Approach emphasising the need for organisations to
operate in a rational manner rather than relying on
owner’s and manager’s arbitrary whims.’

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Bureaucratic management
Weber’s Ideal Bureaucracy
• Specialisation of labour
• Formal rules & procedures
• Impersonality
• Well-defined hierarchy
• Advancement on merit

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Bureaucratic management
Hierarchy

of positions

Advancement
on merit

Max Weber

Specialisation
of labour

Formal rules &
procedures
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Administrative management
‘Approach focusing on principles used by managers
to co-ordinate the organisation’s internal activities.’

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Administrative management
Henri Fayol’s
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Principles of management

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Division of work
Authority
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Discipline
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Unity of
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command/direction
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• Primacy of general interest
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• Remuneration
• Esprit de corps

Centralisation
Scalar chain
Order
Equity
Low turnover
Initiative

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Administrative management
Organising
Planning
Commanding

Henri Fayol
Controlling

Co-ordinating

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Behavioural theorists
‘Perspective on management emphasising the
importance of attempting to understand various
factors affecting human behaviour in organisations.’

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Behavioural theorists
Early theorists:
• Hugo Munsterberg

Creating optimal psychological conditions, behaviour shaping

• Mary Parker Follett
Importance of group functioning

• Hawthorne studies
Importance of supervisory style

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Behavioural theorists
Human relations movement
• Abraham Maslow
Hierarchy of Needs
• Douglas McGregor
Theory X & Y

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Maslow’s Hierarchy of Needs
Self-actualisation
Esteem
Social
Safety

Physiological
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McGregor’s Theory X & Y
Theory X

Theory Y

Work
Workavoiding
avoiding

Work
Workis
isnatural
natural

Need
Needto
tocontrol
control

Capable
Capableof
ofself-direction
self-direction

Avoid
Avoidresponsibility
responsibility

Seek
Seekresponsibility
responsibility

Workers
Workersseek
seeksecurity
security

Can
Canmake
makegood
gooddecisions
decisions

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Quantitative management
viewpoint
‘Focuses on mathematics, statistics and information
aids to support managerial decision making and
organisational effectiveness.’

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Quantitative management
viewpoint

• Management science

‘Approach aimed at increasing decision effectiveness through use
of sophisticated mathematical models & statistical methods.’

• Operations management
‘Function or field of expertise primarily responsible for managing
production & delivery of an organisation’s products and services.’

• Management information systems
‘Field of management focused on designing & implementing
computer-based information systems for use by management.’

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Contemporary viewpoints
• Systems theory
‘Approach based on the idea that organisations can
be viewed as systems.’

• Contingency theory
‘Viewpoint arguing that appropriate managerial
action depends on the particular parameters of the
situation.’

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Contemporary viewpoints
• Theory Z
‘Concept combining positive aspects of American
and Japanese management into a modified
approach aimed at increasing managerial
effectiveness while remaining compatible with the
norms and values of American society and culture.’
• Total Quality approach
‘Approach highlighting collective responsibility for
product and service quality, and encouraging
individuals to work together to improve quality.’
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Promoting innovation
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Each management viewpoint provides a contribution
to managing innovation:
Classical
Behavioural
Quantitative
Contemporary

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